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Turner Construction implements Lean accounting principles. Requirements: Calculate the Return on Investment (ROI) for a construction project that cost Turner Construction $10,000,000 and generated a
- Turner Construction implements Lean accounting principles.
- Requirements:
- Calculate the Return on Investment (ROI) for a construction project that cost Turner Construction $10,000,000 and generated a profit of $2,000,000.
- Suggest ways to improve ROI for future projects.
- Discuss how ROI analysis supports Lean principles in construction project management at Turner Construction.
- Present a table showing ROI calculations and potential improvements.
Metric | Calculation | Value |
Return on Investment (ROI) | (Profit / Cost) × 100 | ($2,000,000 / $10,000,000) × 100 |
Improved ROI Target | Increased Profitability / Same Cost | $X |
Financial Impact | Higher returns and shareholder value | $Y |
Impact on Income Statement | Enhanced profitability and capital efficiency | $Z |
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